Charming Charlie, a Houston-based specialty retailer focused on fashion jewelry, has filed for Chapter 11 bankruptcy reorganization. The chain, which operates about 375 stores, has begun closing 97 of them.

The retailer is also seeking bankruptcy court permission to reject the leases on those stores, which it claims will save approximately $1.7 million per month in rent and associated costs.

Charming Charlie is working with A&G Realty Partners and Hilco Merchant Resources on its real estate strategy and store closings.

The states with the most closures include: California, 14; Texas, 10; Massachusetts, seven; Illinois and Tennessee, six each.

Charming Charlie expects to operate the remainder and its website as usual during the court-supervised process.

“The actions we are announcing today are intended to help ensure that the company has adequate sources of financing and the right capital structure to support the business on an ongoing basis as we continue to implement our back-to-basics strategy,” said Lana Krauter, interim CEO of Charming Charlie. “We are confident that by reducing the size and scale of our business, we can focus on the core strengths that make the company successful.”

Like many other retail and apparel-focused companies, Charming Charlie has suffered from adverse macro-trends as well as certain operational shortfalls, including merchandising miscalculations, lack of inventory and an overly broad vendor base, all of which has led to underperformance and reduced sales, the firm noted in its filing.

Consolidated net revenue has declines over 22% and EBITDA declined over 75% in the last several fiscal years, according to a statement by Robert Adamek, CFO of Charming Charlie, in support of the bankruptcy filing.

The company has secured commitments for $20 million in new-money debtor-in-possession financing from a majority of its existing term loan lenders. The company also negotiated a $35 million DIP asset backed loan with its current lenders.

Kirkland & Ellis LLP is serving as the company’s legal counsel; AlixPartners LLP is serving as its restructuring advisor; and Guggenheim Securities, LLC is serving as its investment banker.